Logistec announces its results for the first quarter of 2017

MONTRÉAL, May 9, 2017 /CNW Telbec/ - Logistec Corporation (TSX: LGT.A LGT.B), a marine and environmental services provider, today announced its financial results for the first quarter ended March 25, 2017.

During the first quarter of 2017, consolidated revenue totalled $60.1 million, a decrease of $4.8 million or 7.4% over the same period in 2016. Revenue from the marine services segment was down $4.1 million or 9.1% to $41.3 million for the first quarter of 2017, while revenue from the environmental services segment amounted to $18.8 million, down by $0.7 million, or 3.4% from the first quarter of 2016.

The decline in revenue in the marine services segment stems primarily from the loss of the Saint John (NB) container terminal concession and, to a lesser degree, from reduced break-bulk cargo volumes. The slight revenue decrease in the environmental services segment was due to lower Aqua-Pipe activity, partially offset by an increase in site remediation revenue. The first quarter of 2017 closed with a consolidated loss attributable to owners of the Company of $1.5 million, compared to a loss of $0.1 million for the first quarter of 2016. The loss attributable to owners of the Company translated to a total basic and diluted loss per share of $0.12, of which $0.12 was attributable to Class A Common Shares and $0.13 was attributable to Class B Subordinate Voting Shares.

Outlook

"We are disappointed in our first quarter results, but are confident in the year ahead. In cargo handling, we have worked diligently to replace the revenue from our lost concession in Saint John (NB), and are pleased to have closed on two new projects during the quarter. These projects, along with a better outlook for bulk and container business, should help us resume our growth momentum in the cargo handling business. The start at Sanexen has been difficult, as we are preparing for a strong year in a season where there is little activity. Furthermore, this has been exacerbated by a challenging contract we are dealing with in Europe. Our backlog is strong for both Aqua-Pipe rehabilitation and site remediation, and we are optimistic about our financial performance in 2017," indicated Madeleine Paquin, President and Chief Executive Officer of Logistec Corporation.

About Logistec

Logistec Corporation is based in Montréal (QC) and provides specialized services to the marine community and industrial companies in the areas of bulk, break-bulk and container cargo handling in some 30 ports and 40 terminals located in eastern North America. Logistec also offers marine transportation services geared primarily to the Arctic coastal trade, short-line rail transportation services, as well as marine agency services to foreign shipowners and operators serving the Canadian market. Furthermore, the Company operates in the environmental sector where it provides services to industrial, municipal and other governmental customers for the trenchless structural rehabilitation of underground water mains, regulated materials management, site remediation, risk assessment, and manufacturing of woven hoses.

The Company has been profitable and has paid regular dividends since becoming public and payments have grown steadily over the years. A public company since 1969, Logistec's shares are listed on the Toronto Stock Exchange under the ticker symbols LGT.A and LGT.B. More information can be obtained on the Company's website at www.logistec.com.

Forward-Looking Statements

For the purpose of informing shareholders and potential investors about the Company's prospects, sections of this document may contain forward-looking statements, within the meaning of securities legislation, about the Company's activities, performance and financial situation and, in particular, hopes for the success of the Company's efforts in the development and growth of its business. These forward-looking statements express, as of the date of this document, the estimates, predictions, projections, expectations or opinions of the Company about future events or results. Although the Company believes that the expectations produced by these forward-looking statements are founded on valid and reasonable bases and assumptions, these forward-looking statements are inherently subject to important uncertainties and contingencies, many of which are beyond the Company's control, such that the Company's performance may differ significantly from the predicted performance expressed or presented in such forward-looking statements. The important risks and uncertainties that may cause the actual results and future events to differ significantly from the expectations currently expressed are examined under "Business Risks" in the Company's annual report and include (but are not limited to) the performances of domestic and international economies and their effect on shipping volumes, weather conditions, labour relations, pricing and competitors' marketing activities. The reader of this document is thus cautioned not to place undue reliance on these forward-looking statements. The Company undertakes no obligation to update or revise these forward-looking statements, except as required by law.

Additional information relating to our Company can be found on SEDAR's website at www.sedar.com and on Logistec's website at www.logistec.com.

 


(in thousands of Canadian dollars, except for per share amounts and number of shares)

(unaudited and not reviewed by the independent auditor)

Logistec Corporation


Condensed Consolidated Interim Statements of Earnings




For the three months ended


March 25,
2017

March 26,
2016


$

$




Revenue

60,071

64,859




Employee benefits expense

(31,806)

(32,001)

Equipment and supplies expense

(17,274)

(18,377)

Rental expense

(6,933)

(6,819)

Other expenses

(3,636)

(4,185)

Depreciation and amortization expense

(4,026)

(3,036)

Share of profit of equity accounted investments

407

190

Other gains and losses

1,730

(1,058)

Operating profit

(1,467)

(427)




Finance expense

(395)

(305)

Finance income

83

62

Profit before income taxes

(1,779)

(670)




Income taxes

220

169

Profit (loss) for the period

(1,559)

(501)




Profit attributable to:






Owners of the Company

(1,530)

(138)




Non-controlling interests

(29)

(363)

Profit (loss) for the period

(1,559)

(501)







Basic earnings per Class A Common Share (1)

(0.12)

(0.01)

Basic earnings per Class B Subordinate Voting Share (2)

(0.13)

(0.01)




Diluted earnings per Class A share

(0.12)

(0.01)

Diluted earnings per Class B share

(0.13)

(0.01)




Weighted average number of Class A shares outstanding, basic and diluted

7,412,255

7,430,322

Weighted average number of Class B shares outstanding, basic

4,739,603

4,834,200

Weighted average number of Class B shares outstanding, diluted

5,491,515

4,859,334



(1) 

Class A Common Share ("Class A share")

(2) 

Class B Subordinate Voting Share ("Class B share")

 

(in thousands of Canadian dollars)

(unaudited and not reviewed by the independent auditor)

Logistec Corporation


Condensed Consolidated Interim Statements of Comprehensive Income



For the three months ended


March 25,
2017

March 26,
2016


$

$




Loss for the period

(1,559)

(501)




Other comprehensive loss




Items that are or may be reclassified to the consolidated statements of earnings





Currency translation differences arising on translation of foreign operations

(164)

(1,635)



Transfer of losses on derivatives designated as cash flow hedges to the consolidated statements of earnings

14



Income taxes relating to derivatives designated as cash flow hedges

(4)


Total items that are or may be reclassified to the consolidated statements of earnings

(164)

(1,625)





Items that will not be reclassified to the consolidated statements of earnings





Return on retirement plan assets excluding amounts included in profit for the period

373

(215)



Income taxes on remeasurement losses on benefit obligation and return on retirement plan assets excluding amounts included in profit for the period

(100)

58


Total items that will not be reclassified to the consolidated statements of earnings

273

(157)





Share of other comprehensive income of equity accounted investments, net of income taxes





Items that are or may be reclassified to the consolidated statements of earnings

(92)


Total share of other comprehensive income of equity accounted investments, net of income taxes

(92)




Other comprehensive income (loss) for the period, net of income taxes

109

(1,874)




Total comprehensive loss for the period

(1,450)

(2,375)




Total comprehensive loss attributable to:






Owners of the Company

(1,421)

(2,012)

Non-controlling interests

(29)

(363)

Total comprehensive loss for the period

(1,450)

(2,375)

 

(in thousands of Canadian dollars)

(unaudited and not reviewed by the independent auditor)

Logistec Corporation


Condensed Consolidated Interim Statements of Financial Position





As at
March 25,
 2017

As at
December 31,
 2016


$

$




Assets



Current assets




Cash and cash equivalents

13,327

15,971


Short-term portion of investment in a service contract

865


Trade and other receivables

54,224

86,373


Work in progress

7,349

4,395


Current income tax assets

4,735

3,767


Other financial assets

1,059

1,014


Assets available for sale

330


Prepaid expenses

5,608

5,654


Inventories

7,960

7,506


94,262

125,875




Equity accounted investments

31,049

31,141

Property, plant and equipment

149,126

138,591

Goodwill

26,156

24,899

Other intangible assets

17,822

18,233

Other non-current assets

1,616

1,534

Non-current financial assets

5,128

7,166

Post-employment benefit assets

745

706

Deferred income tax assets

7,871

7,715

Total assets

333,775

355,860




Liabilities



Current liabilities




Short-term bank loans

98


Trade and other payables

35,288

43,081


Deferred revenue

2,783

2,928


Current income tax liabilities

228

149


Dividends payable

947

947


Current portion of long-term debt

2,242

1,681


Provisions

787

1,344


42,373

50,130




Long-term debt

44,781

58,644

Provisions

768

800

Deferred income tax liabilities

13,369

13,382

Post-employment benefit obligations

12,946

13,076

Deferred revenue

4,033

4,133

Non-current financial liabilities

15,064

12,514

Total liabilities

133,334

152,679




Equity



Share capital

15,805

15,618

Share capital to be issued

24,689

24,898

Retained earnings

149,090

151,616

Accumulated other comprehensive income

9,087

9,251

Equity attributable to owners of the Company

198,671

201,383




Non-controlling interests

1,770

1,798

Total equity

200,441

203,181




Total liabilities and equity

333,775

355,860

 

(in thousands of Canadian dollars)

(unaudited and not reviewed by the independent auditor)

Logistec Corporation


Condensed Consolidated Interim Statements of Changes in Equity



Attributable to owners of the Company






Accumulated

other comprehensive
income






Share
capital

Share
capital
to be
issued

Cash
flow
hedges

Foreign
currency
translation

Retained
earnings

Total

Non-
controlling
interests

Total
equity


$

$

$

$

$

$

$

$










Balance as at January 1, 2017

15,618

24,898

(4)

9,255

151,616

201,383

1,798

203,181










Profit for the period

(1,530)

(1,530)

(29)

(1,559)










Other comprehensive income (loss)










Currency translation differences arising on translation of foreign operations

(164)

(164)

(164)


Remeasurement losses on benefit obligation and return on retirement plan assets excluding amounts included in profit for the period, net of income taxes

273

273

273

Total comprehensive loss for the period

(164)

(1,257)

(1,421)

(29)

(1,450)










Repurchase of Class A shares

(21)

(21)

(21)

Issue and Repurchase of Class B shares

187

(209)

(301)

(323)

(323)

Non-controlling interest arising from a business acquisition

2,545

2,545

Dividends on Class A shares

(556)

(556)

(556)

Dividends on Class B shares

(391)

(391)

(391)

Balance as at March 25, 2017

15,805

24,689

(4)

9,091

149,090

198,671

4,314

202,985










Balance as at January 1, 2016

14,985

(139)

10,413

164,154

189,413

20,232

209,645










Loss for the period

(138)

(138)

(363)

(501)










Other comprehensive loss










Currency translation differences arising on translation of foreign operations

(1,635)

(1,635)

(1,635)


Remeasurement losses on benefit obligation and return on retirement plan assets excluding amounts included in profit for the period, net of income taxes

(157)

(157)

(157)


Cash flow hedges, net of income taxes

10

10

10


Share of other comprehensive income of equity accounted investments, net of income taxes

(92)

(92)

(92)

Total comprehensive loss for the period

(82)

(1,635)

(295)

(2,012)

(363)

(2,375)










Repurchase of Class A shares

(7)

(420)

(427)

(427)

Repurchase of Class B shares

(406)

(7,017)

(7,423)

(7,423)

Repurchase of non-controlling interests

24,898

(18,148)

6,750

(18,061)

(11,311)

Dividends on Class A shares

(557)

(557)

(557)

Dividends on Class B shares

(393)

(393)

(393)

Balance as at March 26, 2016

14,572

24,898

(221)

8,778

137,324

185,351

1,808

187,159

 

(in thousands of Canadian dollars)

(unaudited and not reviewed by the independent auditor)

Logistec Corporation


Condensed Consolidated Interim Statements of Cash Flows




For the three months ended


March 25,
2017

March 26,
2016


$

$




Operating activities




Loss for the period

(1,559)

(501)


Items not affecting cash and cash equivalents

2,546

4,575


Cash generated from operations

987

4,074


Dividends received from equity accounted investments

500


Contributions to defined benefit retirement plans

(201)

(306)


Settlement of provisions

(138)

(5)


Changes in non-cash working capital items

23,294

(3,201)


Income taxes paid

(917)

(3,266)


23,525

(2,704)




Financing activities




Net change in short-term bank loans

98

18


Issuance of long-term debt

10,328

12,358


Repayment of long-term debt

(23,747)

(2,397)


Interest paid

(399)

(313)


Repurchase of Class A shares

(21)

(427)


Repurchase of Class B shares

(322)

(7,423)


Dividends paid on Class A shares

(555)

(557)


Dividends paid on Class B shares

(392)

(410)


(15,010)

849




Investing activities




Customer repayment of an investment in a service contract

865

70


Interest received

92

59


Repurchase of a non-controlling interest

(666)

(2,392)


Business acquisition

(5,805)

(4,560)


Cash acquired in a business acquisition

197


Acquisition of property, plant and equipment

(7,571)

(4,688)


Proceeds from disposal of property, plant and equipment

2,094

80


Acquisition of other non-current financial assets

(179)


Repayment of other non-current financial assets

47


Acquisition of intangible assets

(25)


Acquisition of other non-current assets

(29)


Repayment of other non-current assets

23


(11,100)

(11,288)




Net change in cash and cash equivalents

(2,585)

(13,143)

Cash and cash equivalents, beginning of period

15,971

23,811

Effect of exchange rate on balances held in foreign currencies of foreign operations

(59)

396

Cash and cash equivalents, end of period

13,327

11,064




Additional information






Acquisition of property, plant and equipment included in trade and other payables

329

1,406

 

 

SOURCE Logistec Corporation

For further information: Jean-Claude Dugas, CPA, CA, Vice-President, Finance, Logistec Corporation, jdugas@logistec.com, (514) 985-2345

RELATED LINKS
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